Finance Board cuts budget by $11.5M
Federal grants will cover some, but not all, of the reduction
“It is our sincere hope that the Board of (Education) does not make up this cut by taking more of the ESSER grant.” Finance Board chairman Richard Freedman
STAMFORD — Most of the cuts proposed by Board of Finance members Thursday night were in the hundreds of thousands, unlike the millions slashed last year in the throes of the
COVID-19 pandemic.
In all, the board approved a total reduction of $11.5 million to the city and school budget for the upcoming 2021-22 fiscal year.
But the biggest cut actually came weeks prior, and wasn’t really a cut at all.
The Stamford Board of Education voted a month ago to use recently-available one-time federal funds to pay for a number of positions and programs previously slated to be paid for in the operating budget.
Superintendent Tamu Lucero suggested using half of the $12 million granted to the school district from the Elementary and Secondary School Emergency Relief Fund, through the COVID-19 relief CARES Act. The other $6 million would be used to cover the same positions and programs for the following fiscal year, at which point the grant money would run out.
The money is meant to address learning losses due to the ongoing pandemic, the social and emotional well-being of students, and
“We truly appreciate the Board of Finance’s recognition of our district’s great need for funding, especially in light of last year’s circumstances.” Stamford Superintendent Tamu Lucero
other areas affected by the spread of the virus.
The $6 million would cover positions such as parent facilitators, restorative support facilitators, and a technology coordinator, as well as psychologists, social workers, paraeducators, and others. It would also partly fund the use of the online platform Edgenuity, as well as additional summer school and after-school classes, and air quality projects throughout the district.
Additionally, the school district identified $2.37 million in savings, mostly in healthcare expenses.
The Board of Finance further reduced the school’s budget by $1.5 million Thursday night in a general cut.
Board chairman Richard Freedman said the proposed reduction is about a fourth of the ESSER funds programmed for next year, and said the Board of Education should be able to accommodate the cut easily and with no impact to its programs. But he did caution education officials on relying on stimulus money.
“It is our sincere hope that the Board of (Education) does not make up this cut by taking more of the ESSER grant,” he said. “That would actually contravene exactly what the advice of this board is, which is to reduce the reliance on federal stimulus spending, so that when we get to a point two years from now ... the Board of (Education) will be able to come in with a reasonable increase to the operating budget with no federal stimulus money at all.”
In a written statement, Lucero said the budget approved by the finance board was “fiscally sound and responsible.”
“We truly appreciate the Board of Finance’s recognition of our district’s great need for funding, especially in light of last year’s circumstances,” she wrote. “Given the extent of cuts we’ve received in year’s past, I believe the BOF’s action last night acknowledges the thoughtful and diligent process we undertook to propose a fiscally sound and responsible budget. My remaining hope is that the Board of Representatives will feel likewise.”
Stamford schools are also anticipating roughly $37 million from the American Rescue Plan stimulus package, which was not seemingly factored into decisions made Thursday night.
Members of the finance board did caution against running to spend that money, however.
“There will be a lot of federal money around, and I hope that we and the rest of Stamford government sees this not as a chance to kind of casually spend it on one thing or another, but rather to use this infusion towards executing some big ideas, some positive ideas for the city,” said member David Mannis.
Unlike the bleak outlook of last year’s proceedings, board members spoke about hope and optimism going forward.
Freedman praised the board and city’s work in weathering the financial storm caused by the coronavirus. The city did not increase taxes last year, in an effort to help residents get through the tough economic time, which Freedman said “was the proper approach.”
As a result, he said, the city was able to maintain its triple-A bond rating.
“Given that we built a $32 million deficit into last year’s budget, I never would have predicted this outcome,” Freedman said.
Looking forward, he said, “We have a vaccine, and we have much greater economic certainty. We have a federal stimulus money that we didn’t have last year, which of course brings its own set of challenges, but some of the problems remain.”
He mentioned increasing pension costs and decaying infrastructure as two issues in need of attention.
Among the other cuts approved by the board was $100,000 in both the police and fire departments, respectively.
“This is a big budget,” said member Mary Lou Rinaldi, referring to the police department’s ask of almost $40 million. “I think they could definitely find savings somewhere to match this cut.”
Rinaldi later suggested cutting about half a million total from the healthcare plans for both police and fire departments to match the savings the city would receive if they were to move both unions to the state partnership health plan.
Member Geoff Alswanger supported the measure, and said switching to the state plan was a “rare” win-win for the city with the unions that agreed to participate in it, including the Stamford Education Association teachers union.
He said the plan saves the city money, saves employees money, and provides better benefits.
“The reason that we haven’t been able to move forward on this specific item, separate from other contractual matters, is beyond me,” he said.